French regulator says some crypto firms unresponsive as EU licence deadline approaches - Reuters

As the European Union's licensing deadline for cryptocurrency firms looms closer, the French financial watchdog has raised concerns about a significant number of crypto companies that have failed to respond to regulatory inquiries. The Autorité des marchés financiers (AMF) emphasized that many firms have not submitted the necessary documentation required to obtain the new licenses mandated under the EU's Markets in Crypto-Assets (MiCA) regulation.

The MiCA regulation, which aims to provide a comprehensive regulatory framework for digital assets across the EU, requires all crypto companies to secure a license by the deadline, which is set for early 2024. This legislation is intended to enhance investor protection and ensure financial stability in the rapidly evolving crypto market. However, the AMF's announcements indicate that a number of firms might not meet the requirements due to a lack of communication or failure to provide requested information.

The AMF has urged these companies to be proactive in their engagement with regulators to avoid potential penalties or business interruptions. The unresponsiveness of these firms raises concerns about their operational viability and commitment to regulatory compliance, which are crucial for maintaining trust in the crypto ecosystem.

As the deadline approaches, the AMF is intensifying its outreach efforts to encourage compliance among crypto firms. This includes offering guidance on the application process and the necessary steps to ensure that they meet the regulatory standards set forth by the MiCA. The regulator is also expected to impose stricter scrutiny on firms that do not engage with the licensing process adequately.

The situation highlights the challenges that many crypto businesses face as they adapt to an increasingly regulated environment. While some firms have successfully navigated the licensing requirements, the AMF's findings underscore the importance of regulatory diligence as the market matures.

Key Takeaways

• The French financial regulator, AMF, reports many crypto firms are unresponsive as the EU's licensing deadline approaches.
• The MiCA regulation requires all crypto businesses to obtain licenses by early 2024 to ensure investor protection.
• The AMF is urging firms to engage with regulators to avoid penalties and maintain operational viability.
• The situation reflects the broader challenges crypto companies face in adapting to new regulatory frameworks.

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